SABMiller Bid For Australia's Foster's Turns Hostile

-SABMiller PLC's (SAB.JO) 9.51 billion Australian dollar ($9.97 billion) bid for Australian brewer Foster's Group Ltd. (FGL.AU) turned hostile Wednesday when the global brewing giant made a conditional, off-market cash offer to shareholders at the same price that Foster's board rejected in June.

SABMiller is offering A$4.90 a share for the Australian beer company compared to Foster's last traded price of A$4.96.

A Foster's spokesperson wasn't immediately available for comment.

SABMiller--the world's second-biggest brewer by volume after Anheuser-Busch InBev NV (ABI.BT)--said the deal would be funded through a combination of existing resources and new debt. The offer is subject to 90% shareholder approval.

"SABMiller believes that the proposal put to the Foster's board is attractive and should be put to Foster's shareholders," the company said in a statement. "As there has been no willingness to engage in relation to SABMiller's proposal on the part of the Foster's board, SABMiller has decided to make an offer to Foster's shareholders directly."

-By Cynthia Koons; Dow Jones Newswires; [phone]; [e-mail]